According to FADA, the auto retail industry remained resilient, closing the year with a 9% Y-o-Y growth.
In CY24, while 2W, 3W, PV and Tractor segments grew by 10.78%, 10%, 5% and 2.5% YoY respectively, CV retails stayed nearly flat at 0.07% YoY.
Notably, 3W, PV and Tractor segments touched new all-time highs and 2W barely missed surpassing its CY18 peak. CV is also yet to reach its CY18 peak, a year which saw the introduction of axle load norms.
In 2W, improved supply, fresh models and strong rural demand propelled growth, though finance constraints and rising EV competition remain challenges. CV performance was subdued amid election-driven uncertainty and reduced infrastructure spending.
Meanwhile, PV benefited from robust network expansion and product launches, albeit with margin pressures due to higher inventory thus leading to discount war towards the 2nd half.
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In December 2024, total retails dropped by -12% Y-o-Y. All categories except Tractors witnessed de-growth, with 2W, 3W, PV and CV falling by -17.6%, -4.5%, -2%, and -5.2% YoY respectively. Tractors, on the other hand, registered a notably contrasting 25.7% YoY growth.
Looking ahead, Auto Dealer sentiment for January remains cautiously optimistic, with nearly half (48.09%) of surveyed dealers anticipating growth, 41.22% expecting stable demand and only 10.69% foreseeing a decline.
Overall, FADA remains optimistic that market recovery, coupled with strategic OEM support and policy-level clarity, will enable the automotive retail industry to end CY25 on a robust note.
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